Buyers and Sellers in a standard California real estate purchase and sale each have obligations to fulfill which the completion of the contract are contingent upon, the failure of which may be grounds to cancel the purchase and sale agreement pursuant to Cal. Civ. Code § 1434 (“An obligation is conditional, when the rights or duties of any party thereto depend upon the occurrence of an uncertain event.”) For example, sellers are under a statutory duty to make certain disclosures regarding the property (see paragraph 6 of California Residential Purchase Agreement) and buyers have a duty to lift loan and inspection contingencies under the same purchase agreement. The failure of a party to perform certain contingencies is grounds for cancelation.
If you are a buyer or seller of real estate in California and are faced with contract related issues, contact one of our Los Angeles Real Estate Attorneys today for a free consultation and case evaluation.